unintended consequences
In the nineties the democrats were upset that CEO's were making so much money. They enacted legislation forcing a special tax on companies that paid their employees more than a million dollars a year.
To get around it companies issued stock options. This caused companies to look for short term gains instead of running the business for the long term.
In the case of the insurance industry, it gave the companies greater incentives to make enormous profits, and raise rates at a higher rate every year. Health insurance executives that used to make a few millions a year for companies that made good profits, now make hundred's of millions a year because by raising rates, they make great profits, their stocks go up, and their option gains increase.
I believe our healthcare cost problems started with this law.
Maybe the heathcare cost problem could solved by limiting options at the executive pay level for this one industry, instead of changing the entire healthcare industry.
